Shares of Sirius Satellite radio plummeted following their Q3 results, as the company did not answer questions regarding the future of “shock jock” Howard Stern. Net income was a penny a share or $67.6 million. Revenue came in at $722 million which was up 15% from a year ago, but what about Stern?
Stern’s five-year, $500 million contract is up at the end of the year and investors are asking will he be back? Analysts estimate that Stern has 1 million active subscribers but the numbers could be much higher. An analysts which asked not to be named said, that Stern “brings the oomph to Sirius.” Allan Edwards the CEO of The Markets Are Open said “Sirius has some attractive programming but Stern is the straw that stirs my drink.”
Sirius shares dropped 6.7%.